Odysight.ai Inc. Leases Disclosure
NOTE 11 - LEASES
On December 31, 2022, the Group’s ROU assets and lease liabilities for operating leases totaled $307 thousand and $263 thousand, respectively.
On December 31, 2021, the Group’s ROU assets and lease liabilities for operating leases totaled $482 thousand and $459 thousand, respectively.
In December 2020, ScoutCam entered into a lease agreement for office space in Omer, Israel. The agreement is for 36 months beginning January 1, 2021. In March 2021, ScoutCam entered into a lease agreement for additional office space in Omer, Israel. The agreement is until December 31, 2023. Monthly lease payments under the agreements are approximately $12 thousand. ScoutCam subleases part of the office space to a third party for $3 thousand per month.
In December 2022, ScoutCam entered into a lease agreement for office space in Ramat Gan, Israel. The agreement is for 12 months beginning on December 14, 2022. The agreement expires on December 14, 2023, and the Company has an option to extend the lease period for an additional one year. The Company doesn’t expect to extend the lease period. Therefore, the Company has elected to use the practical expedient regarding short-term leases. Monthly lease payments under the agreements are $3 thousand.
In addition, the Company leases vehicles under various operating lease agreements.
Operating lease expenses were $264 thousand and $202 thousand for the years ended December 31, 2022 and 2021, respectively.
Supplemental cash flow information related to operating leases during the period presented was as follows:
| Year ended December 31, | ||||||||
| 2022 | 2021 | |||||||
| USD in thousands | ||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
| Operating cash flows from operating leases | 261 | 202 | ||||||
Lease term and discount rate related to operating leases as of the period presented were as follows:
| December 31, | ||||||||
| 2022 | 2021 | |||||||
| USD in thousands | ||||||||
| Weighted-average remaining lease term (in years) | 0.84 | 0.76 | ||||||
| Weighted-average discount rate | 6 | % | 6 | % | ||||
The maturities of lease liabilities under operating leases as of December 31, 2022 are as follows:
| USD in thousands | ||||
| 2023 | 206 | |||
| 2024 | 54 | |||
| 2025 | 16 | |||
| Total undiscounted lease payments | 276 | |||
| Less: Imputed interest | (13 | ) | ||
| Total lease liabilities | 263 | |||
Want the next Odysight.ai Inc. leases disclosure the moment it drops?
Set a Sentinel and we'll alert you the moment Odysight.ai Inc.'s next filing hits EDGAR. No credit card, your email never gets sold.
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.